Hillenbrand Inc (HI)
Cash ratio
Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 199,300 | 242,900 | 232,200 | 446,100 | 302,200 |
Short-term investments | US$ in thousands | — | — | 1,900 | — | — |
Total current liabilities | US$ in thousands | 1,189,100 | 1,291,000 | 1,077,800 | 1,035,100 | 852,100 |
Cash ratio | 0.17 | 0.19 | 0.22 | 0.43 | 0.35 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($199,300K
+ $—K)
÷ $1,189,100K
= 0.17
The cash ratio of Hillenbrand Inc has exhibited a declining trend over the past five years. In particular, the cash ratio decreased from 0.43 in September 2021 to 0.17 in September 2024. This indicates that the company's ability to cover its short-term liabilities with available cash and cash equivalents has decreased. A lower cash ratio may suggest potential liquidity challenges or a higher reliance on other sources of liquidity such as short-term investments or lines of credit. It is important for the company to closely monitor its cash position and ensure that it maintains adequate liquidity to meet its obligations in a timely manner.
Peer comparison
Sep 30, 2024